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On March 2 0 , 2 0 2 4 , Cullumber Corporation purchased two machines at auction for a combined total cost of $ 2

On March 20,2024, Cullumber Corporation purchased two machines at auction for a combined total cost of $241,000. The machines were listed in the auction catalogue at $110,000 for machine X and $155,000 for machine Y. Immediately after the auction, Cullumber had the machines professionally appraised so it could increase its insurance coverage. The appraisal put a fair value of $109,074 on machine X and $185,000 on machine Y.
On March 24, Cullumber paid a total of $5,000 in transportation and installation charges for the two machines. No further expenditures were made for machine X, but $7,400 was paid on March 29 for improvements to machine Y. On March 31,2024, both machines were ready to be used.
The company expects machine X to last five years and to have a residual value of $3,700 when it is removed from service, and it expects machine Y to be useful for eight more years and have a residual value of $15,440 at that time. Due to the different characteristics of the two machines, different depreciation methods will be used for them: machine X will be depreciated using the double-diminishing-balance method and machine Y using the straight-line method.
(a)
Prepare the journal entry to record the purchase of the machines, indicating the initial cost of each.
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